Real Estate Commissions: How Do They Work in 2026?
If you’re thinking about buying or selling a home, you may still be unsure how real estate commissions work, especially after the changes in 2024. It’s always been a topic of conversation, but recently there’s been a lot of confusion.
This article breaks down how commissions work today, specifically in the Greater Boston real estate market, and what sellers should expect when reviewing offers.
What Changed in 2024?
In August 2024, a major industry shift changed how buyer agent compensation is handled.
Sellers are no longer required to offer compensation to a buyer’s agent in advance when listing their property on the MLS. Previously, some amount had to be offered and publicly displayed on sites like Zillow and Redfin.
Today, that’s no longer the case.
Important note: real estate commissions have always been negotiable. There has never been a fixed or standard rate.
How Real Estate Commission Works Today
When I meet with a seller, I explain it this way:
Our listing agreement clearly outlines what you, as the seller, agree to pay for listing agent services upon a successful sale. It does not include any pre-set compensation for a buyer’s agent.
That said, buyer agent compensation often still comes into play during the offer process.
Here are the three most common scenarios we’re seeing in today’s market:
- Buyer requests commission in their offer
A buyer working with an agent submits an offer that includes a request for the seller to pay their agent.
This is now just another negotiable term, similar to price, closing date, or contingencies. Sellers can accept, reject, or counter this request.
- Buyer does not request commission
In some cases, a buyer may choose to pay their agent directly to make their offer more competitive.
This is still relatively rare in the Greater Boston area, but we are occasionally seeing buyers split the commission with the seller.
- Unrepresented buyer
A buyer submits an offer without an agent.
In this case, there is no request for buyer agent compensation, and the seller is only responsible for the listing side of the commission.
Why Sellers Are Still Paying Buyer Agent Commission
Even though sellers are no longer required to offer compensation upfront, in practice, most still do.
In our experience, roughly 90–95% of transactions still involve the seller contributing to buyer agent compensation. Here’s why:
If a buyer has to pay their agent out of pocket, it directly impacts affordability.
For example, a buyer purchasing a $1M home with 20% down may now need additional cash to cover their agent’s fee. That could mean:
- Reducing their down payment and paying PMI
- Bringing in more cash at closing
- Adjusting their offer price downward
In many cases, this results in a lower net outcome for the seller or reduced buyer demand.
Sellers who choose not to offer compensation may think they are maximizing their return, but they can unintentionally limit their buyer pool or affect offer strength.
How Sellers Should Evaluate Offers
The key takeaway is that commission is now part of the negotiation, not a fixed upfront number.
When reviewing offers, it’s important to look at the full picture:
- Offer price
- Requested commission
- Financing terms
- Contingencies
- Closing timeline
We always prepare a net sheet for our clients so they can clearly see what they are expected to walk away with from each offer.
An offer with no buyer agent commission is not automatically the best offer. What matters most is the final net and overall strength of terms.
Final Thoughts
The structure of real estate commissions has changed, but the goal remains the same: maximize exposure, attract strong buyers, and negotiate the best possible outcome.
If you’re considering selling and want to understand how these changes could impact your strategy, I’m happy to walk you through what we’re seeing in the Belmont and Greater Boston markets. Curious what your home could sell for in today’s market? Get your home value here: Home Valuation
Frequently Asked Questions About Real Estate Commissions
Who pays the real estate commission in Massachusetts?
In most transactions, the seller pays the commission at closing. That typically includes compensation for both the listing agent and, if requested in the offer, the buyer’s agent.
Are real estate commissions negotiable?
Yes. Real estate commissions are always negotiable. There is no standard or fixed rate. The amount is agreed upon between the client and their agent.
Do sellers have to pay the buyer’s agent commission?
No. As of 2024, sellers are not required to offer buyer agent compensation upfront. However, many buyers include a request for compensation as part of their offer, which becomes a negotiable term.
What happens if a seller does not offer buyer agent compensation?
If the seller does not agree to pay it, the buyer would need to pay their agent directly. This can impact affordability and, in some cases, the strength of the offer.
Can a buyer pay their own agent?
Yes. Buyers can agree to pay their agent directly, either in full or in part. In competitive situations, this can sometimes make an offer more attractive to a seller.
What is an unrepresented buyer?
An unrepresented buyer is someone who does not have their own agent and is submitting an offer directly. In this case, there is no buyer agent commission requested.
Is an offer without a buyer agent commission better for the seller?
Not necessarily. The best offer depends on multiple factors including price, terms, and overall net proceeds. A lower price with no commission may still net less than a stronger offer that includes compensation.
